Know your budget: The terminologies

Revenue Budget: This consists of the revenue receipts of the government (tax revenues and other revenues) and the expenditure met from these revenues.

Tax revenues: These comprise proceeds of taxes and other duties levied by the Union.

Other revenues: These receipts of government mainly consist of interest and dividend on investments made by government, fees and receipts for other services rendered by government.

Revenue Expenditure: This is expenditure for the normal running of Government departments and various services, interest charges on debt incurred by government, subsidies, etc. Broadly speaking, expenditure which does not result in the creation of assets is treated as revenue expenditure.

All grants given to state governments and other parties are also treated as revenue expenditure even though some of the grants may be for creation of assets.

Capital Budget: This consists of capital receipts and payments. It also incorporates transactions in the Public Account.